### A3 - BLAGAB management expenses (LAM04000)

| Step 1 – Company’s ordinary BLAGAB management expenses of the AP | Total | |---------------------------------------------------------------|-------| | Ordinary BLAGAB management expenses | 109,620 |

| Step 2 | | |---------------------------------------------------------------|-------| | less six-sevenths of the acquisition expenses of the period | (42,500) |

| Step 3 – deemed BLAGAB management expenses – FA2012/S78(3) | | |-----------------------------------------------------------|-------| | Spreading of acquisition expenses | 169,150 | | Capital allowances on management assets | 22,500 | | Transitional relief for old annuity contracts | 8,350 |

| Step 4 – total of steps 1-3, adjust for expenses reversed in the AP and BLAGAB trade loss utilised | | |---------------------------------------------------------------|-------| | Sum of steps 1 to 3 | 267,120 | | Deduct relief previously given for expenses repaid in the AP | (3,600) | | Adjust for BLAGAB trade loss relieved | 0 |

| Step 5 – add management expenses brought forward to the sum of step 4 | | |-----------------------------------------------------------------------|-------| | Management expenses brought forward | 12,500 | | Minimum profits charge of previous AP | 12,630 |

| Adjusted BLAGAB management expenses (A1) | 288,650 |